By: Mahmoud Gamal
Dubai – Mubasher: UAE bourses are expected to see buying and collection of stocks by institutional and foreign investors this week, especially after reaching attracting buying levels, according Hareb Omar, investment manager at Massa consulting.
The analyst told Mubasher that foreign investors have shown new purchasing power in the Abu Dhabi Securities Exchange (ADX) owing to its blue chip stocks, particularly First Gulf bank (FGB) and Etisalat, which have reaching technically attractive levels.
Foreign and institutional buying boosted the ADX's rise on Tuesday, with the benchmark index ending 0.5% up as FGB and Etisalat gained 0.4% and 0.8%, respectively.
Despite the pressures seen on the Dubai Financial Market (DFM), institutional investors are currently buying shares, a step which confirms that stocks have reached good profitable levels, Omar added. UAE and institutional investors' purchases helped the DFM shrug off selling by retail and foreigner investors and rise by 0.2% on Tuesday.
On his part, UAE market analyst Mohamed Al-Kaaby told Mubasher that he expected the DFMGI to continue its rebound upwards and reach the level of 3,342 points. Passing that level would enable the DFMGI to trade above 3,348 points, he added.
However, Al-Kaaby also warned of possible investor selling amid the growing state of anticipation for the US Federal Reserve's decision on interest rates.
The US Federal Reserve Open Market Committee is expected to conclude its meeting on Wednesday and give its decision on interest and monetary policy.
Market analyst Mohamed Al-Harby advised investors to remain outside the market at the present time until the situation stablises and oil prices reach support levels, according to his statement to Mubasher.
Translated by: Nada Adel Sobhi
